Blocklog - digital transformation for logistics using biometrics blockchain

Abstract

Road freight transport in Brazil represents 4.5% of GDP and is a key component of the economy. Autonomous (Autonomous) Transporters are a representative part of this sector. Currently, there are more than 545 thousand Autonomous registered at the National Road Transport Association against 155 thousand transport companies (Carriers). However, for reliability, safety and governance, many companies (shippers) hire carriers that, to reduce costs and optimize routes, subcontract Autonomous to perform part of the services. Despite the high representativeness of transportation activity in the cost of products, around 12.37% of gross revenues, more than half of Autonomous plead the low remuneration as a threat to the profession, where the price practiced might reach 35% below the value practiced by the Carriers. The complexity for Autonomous involves, in addition to hiring and paying freight, a large flow of goods, money, information and responsibilities, as well as transactions related to confirmation of deliveries and resolution of delivery problems conflicts, among others. Currently, there are marketplaces that mediate negotiations or centralize demand & supply and Autonomous use them in order to increase their visibility and the customer base. However, these platforms overlook several opportunities to simplify and increase process, reliability and traceability using new technologies. Among these opportunities, we identified the innovative use of Blockchain technologies with Digital Biometrics. With the Biometric Blockchain, we might directly connect Autonomous with Shippers, eliminating intermediaries in operations which charge fees for their services. Additionally, we might improve freight management and to calculate and control payments intelligently and automatically with Smart Contract processes, ensuring effective compliance with pre-established rules between the parties. In addition, the Biometric Blockchain ensures control of digital identity in cargo handling, increasing traceability and reliability by controlling the cargo custody chain through the generation of biometric receipts, which are stored in the blockchain, incorruptible, to all process steps, up to the generation of proof of delivery. This technology increases security and transparency, and strengthen the relationship between Shippers, Autonomous and Customers. The knowledge of the market and of the difficulties faced by Autonomous associated with a literature review were the basis for structuring the research proposal. For the development of the Blocklog Platform, a combination of Living Lab and the agile software development methodology (Scrum) will be used to develop, in Phase 1, the Minimum Viable Product (MPV) as a way to identify, in the early stages of the research, the challenges for the development of the complete Platform and to validate the proposed concept. (AU)